Bengaluru boasts highest rental yield in the first quarter of 2024

Bengaluru secured top spot with rental yield of 4.45% increase

Sarjapur Road and Whitefield have witnessed substantial growth

Bengaluru has emerged as the frontrunner among Indian cities, boasting the highest rental yield in the first quarter of 2024.

According to a recent report by property consultancy Anarock, released on Monday, Bengaluru secured the top spot with a remarkable rental yield of 4.45%, marking a significant 24% increase compared to 2019 levels, where it stood at approximately 3.6%.

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The report attributes this surge in rental yield to a robust post-pandemic rental demand, especially in key areas of the city. As professionals gradually return to their workplaces, rents in Bengaluru have been steadily increasing.

Key areas like Sarjapur Road and Whitefield have witnessed substantial growth in average rental values. In Q1 2024, average monthly rents for a standard 2 BHK flat of 1,000 sq. ft. in Sarjapur Road increased from around Rs 31,600 in Q4 2023 to approximately Rs 34,000/month. Similarly, in Whitefield, average monthly rents rose from Rs 30,200 in Q4 2023 to Rs 32,500 in Q1 2024, marking an 8% increase.

While Bengaluru leads the trend, other major cities have also experienced an increase in rental values, albeit not as pronounced. Mumbai secured the second position with a rental yield of 4.15%, followed closely by Gurugram at 4.1%.

Santhosh Kumar, Vice Chairman of Anarock Group, reportedly emphasized that the current momentum suggests no immediate signs of the rental inflation trend slowing down. He anticipates high rental activity to persist in the upcoming quarters, particularly in the first two quarters of the fiscal year.